California Homebuyers Crying Uncle Amid Affordability Crunch

Rising prices and mortgage interest rates are causing California buyers to shy away from making a purchase. Experts say buyers unable to enter the market believe a correction may be coming

CoreLogic's data show that home sales are down almost 5 percent year-over-year for Sacramento in June, Bay Area sales were down 9 percent, and in SoCal, sales diminished 12 percent in what is being described as "'buyer fatigue' after six years of nonstop price increases," The Sacramento Bee reports.  CoreLogic analyst Andrew LePage explains, “Some buyers don’t like what they are seeing and are just walking." State realtor data show that the median price of homes sold in June was $603,000, while Fewer than 30 percent of Californians can afford the median price for an existing home in the state.

Johanna Prucha McCarthy, 33, a state worker and midtown Sacramento resident, is among many who would love to buy, but haven’t pulled the trigger. She describes herself as “a little obsessed” by the real estate market. She has a handful of apps on her smart phone that allow her to monitor the market. She has a real estate agent, money for a down payment, and has gone to countless open houses. But after looking seriously for a central city house for more than a year, she’s become disillusioned as prices continue to rise and as more Bay Area residents buy Sacramento homes.

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